Retail News CRM

Author: Mei Ling Tan

  • Hanwha Group Mulls Sale Of Fg Korea, Operator Of Five Guys Franchise In South Korea

    Hanwha Group Mulls Sale Of Fg Korea, Operator Of Five Guys Franchise In South Korea

    The South Korea-based conglomerate, Hanwha Group, is reported to be contemplating the sale of FG Korea, the operator of the American burger franchise Five Guys in South Korea.

    FG Korea and Hanwha Group

    FG Korea functions as a fully-owned subsidiary of Hanwha Galleria, which is the retail division of Hanwha Group. The company recently disseminated documents to private equity firms via a local accounting firm, Samil PwC. This action is seen as an indicator of a possible sale. It is anticipated that if a sale does occur, it would likely result in the complete transfer of ownership of the company.

    FG Korea’s Expansion

    FG Korea was instrumental in introducing Five Guys to the South Korean market in 2023, with the inaugural restaurant opening in the Gangnam district of Seoul. Since then, the chain has grown to include seven branches, with plans for an eighth location to open later this month in Yongsan, central Seoul.

    In the previous year, FG Korea had entered into an agreement with Five Guys International to spearhead the brand’s expansion into Japan, with an ambitious goal of establishing more than 20 outlets within the span of seven years.

    FG Korea’s Financial Performance

    In the past fiscal year, FG Korea reported significant sales of 46.5 billion won (approximately US$33.4 million) and a net income of 2 billion won.

    This potential sale is understood to be part of Hanwha Galleria’s attempts to optimize its portfolio and reduce expenses.

    Questions & Answers

    What is the relationship between FG Korea and Hanwha Group?
    FG Korea is a wholly-owned subsidiary of Hanwha Galleria, which is the retail branch of Hanwha Group.

    What has been FG Korea’s role in the expansion of Five Guys?
    FG Korea brought Five Guys to South Korea in 2023 and has since helped the brand grow to seven locations. Furthermore, they have also signed a memorandum of understanding with Five Guys International to lead the brand’s expansion into Japan.

    What is the financial performance of FG Korea in the past fiscal year?
    FG Korea reported 46.5 billion won (approximately US$33.4 million) in sales and a net income of 2 billion won in the last fiscal year.

  • Acne Studios Unveils Pink Granite-adorned Flagship Store In Tokyo’s Aoyama District

    Acne Studios Unveils Pink Granite-adorned Flagship Store In Tokyo’s Aoyama District

    Acne Studios, a renowned fashion brand from Sweden, has unveiled its flagship store in the Aoyama district of Tokyo.

    Designing the Flagship Store

    The store occupies three levels and was crafted in association with Hallerod, an architecture firm based in Stockholm and a long-term collaborator of the brand. The store’s interior is predominantly adorned by pink granite, a signature material in Acne’s retail settings, employed throughout the store’s floors, walls, and fixtures.

    Max Lamb, a London-based designer, contributed matching pink sofas made of leather and fabric, adding to the store’s distinctive aesthetic. The lighting was designed by Parisian Benoit Lalloz, further enhancing the store’s unique ambiance.

    Collaborations & Collections

    The basement of the store features ceramic works by Takuro Kuwata, a renowned Japanese artist. These pieces were curated as part of a collaboration spearheaded by Acne’s creative director, Jonny Johansson. This partnership also resulted in a capsule collection that reimagines traditional Acne pieces. The collection includes denim, bags, and small leather goods.

    Store Offerings

    The flagship store houses the complete range of Acne Studios products. Shoppers can find men’s and women’s clothing, footwear, accessories, jewelry, and eyewear, offering a comprehensive Acne Studios shopping experience.

    Questions & Answers

    Who designed the interior for Acne Studios’ flagship store in Tokyo?
    The space was designed in collaboration with Stockholm-based architecture firm Hallerod. The interior is characterized by pink granite, used throughout the store’s floors, walls, and fixtures.

    What is unique about the basement of the store?
    The basement displays ceramic works by Japanese artist Takuro Kuwata. These were curated as part of a project led by Acne’s creative director, Jonny Johansson.

    What types of items does the store sell?
    The store carries the full Acne Studios range, including men’s and women’s apparel, footwear, accessories, jewelry, and eyewear.

  • Onitsuka Tiger Announces 2027 North American Comeback As Part Of Global Expansion Strategy

    Onitsuka Tiger Announces 2027 North American Comeback As Part Of Global Expansion Strategy

    Japanese footwear label Onitsuka Tiger has unveiled its plans to make a comeback in the North American market by 2027, signifying a critical phase in the company’s international growth strategy.

    Onitsuka Tiger, which is managed by sports apparel titan Asics, had previously closed its retail stores in the United States in 2023. In a recent announcement, a representative of Onitsuka Tiger revealed their plans of utilizing their worldwide e-commerce platform to penetrate new regions and reestablish their presence in the U.S.

    The spokesperson said, “Our initiatives are geared toward not just enlarging our business scope but also towards constructing a enduring brand value in the international marketplace, in line with Onitsuka Tiger’s principles and artistic sensitivity.”

    At present, Onitsuka Tiger operates in over 150 locations globally and has a dominant presence in Japan, Greater China, South Korea, and Europe. In a recent move to reinforce its high-end positioning, the company launched a new global flagship store in Paris on the renowned Avenue des Champs-Elysees.

    By the year 2030, the company has set its sights on setting up more than four large-scale stores, each spanning approximately 1500 square meters, in key cities around the world.

    Questions & Answers

    When is Onitsuka Tiger planning to return to the North American market?
    Onitsuka Tiger plans to re-enter the North American market by the year 2027.

    How does Onitsuka Tiger plan to expand its global presence?
    Onitsuka Tiger plans to use its global e-commerce platform to venture into new regions and reestablish its presence in markets it previously operated in, such as the U.S.

    What are the company’s expansion goals by 2030?
    By 2030, Onitsuka Tiger aims to open more than four large-format stores, each around 1500 square meters, in major global cities.

  • Taiwanese Beef Noodles Specialist Duan Chun Zhen Expands Footprint to ELEMENTS Unveiling its Storied Comfort Food

    Taiwanese Beef Noodles Specialist Duan Chun Zhen Expands Footprint to ELEMENTS Unveiling its Storied Comfort Food

    Duan Chun Zhen, renowned for its sumptuous classic Taiwanese beef noodles, welcomes the opening of its fifth location in Hong Kong, at ELEMENTS in West Kowloon. This new branch of the beloved international chain upholds a family legacy of authentic Sichuan flavours while capturing the vibrant essence of Taiwan’s night-market culture, presenting irresistible beef noodles, popular rice bowls and signature street snacks.

    Seating 80 diners, the ELEMENTS outlet is conveniently located next to the cinema, luring film buffs and foodies into inviting interiors for bowls of aromatic comfort food. Chinese tradition meets contemporary elegance in warm wooden tones, with bamboo features lining the walls and criss-crossing the ceiling, and wooden floors and subtle wooden accents adding a sense of natural charm.

    To celebrate the opening of its latest Hong Kong location, Duan Chun Zhen will gift an exclusive facial mask daily to its first 20 customers who order any noodle dish from 19-25 July 2025. Launched in Taiwan earlier this summer, the skin-nourishing Green Pepper Flavour Beef Noodle Mask is infused with Damask rose extract, collagen, vitamin B8 and the delightful aroma of green Sichuan pepper. Extending the brand’s artistry beyond the kitchen, this uplifting keepsake for lucky diners is ideal for pampering skin during the sweltering summer months.

    As an additional limited-time offer, patrons of Cafe Deco Pizzeria can present their receipt at Duan Chun Zhen in ELEMENTS within 7 days to enjoy HK$30 off the bill (with a minimum spend of HK$100 or more between 19 July and 18 August 2025). Both restaurants are managed in Hong Kong by Cafe Deco Group.

    The story of these celebrated Taiwanese beef noodles begins with Duan Chun Zhen, a passionate home cook who arrived in Taiwan from Sichuan in 1945. She supported herself by making the traditional seasonings of her province – bean paste, pickled pepper, spicy bean curd, sweet fermented rice – as well as aromatic Sichuan braised dishes, and selling them from a bicycle stall at Hsinchu Air Base. Her grandson, Fan Kwong Zhi, heir to her culinary expertise, opened the family’s first noodle shop in 2007 to honour her memory. Connecting Taiwanese cuisine to the world with beef noodles, the brand has grown to embrace 11 outlets in Taiwan, 5 in Hong Kong, and 2 in California, USA.

    The soul of Duan Chun Zhen’s house-special classic beef noodles is the broth that takes 18 hours to perfect, starting with an intricate 8-hour process of stir-frying raw fatty beef together with 23 different spices and herbs, including Da Hong Pao (big red) Sichuan peppercorns and Pixian doubanjiang (broad-bean paste). This intense, fragrant base is used to braise beef, which then simmers for hours with beef bone to make a moreish, mouth-tingling broth.

    Diners can choose from 2 kinds of noodles – thin noodles or wider, chewy handmade noodles – both designed to soak up the delicious house soup. During a traditional vermicelli production process, the thin noodles are punctured by multiple air holes, increasing their ability to absorb the flavours of the liquid. The handmade noodles benefit from repeated dough sheeting that not only keeps them firm and elastic but also results in an uneven thickness so they too can better ingest the soup.

    A whole chicken is simmered for 6 hours for the flavoursome and fragrant soup base of Rich Chicken Broth Noodles with Drumstick (HK$88) and Chicken Drumstick Noodles in Pepper Soup with Pickled Greens (HK$88). Among a selection of dry noodle dishes, Shredded Chicken with Garlic Flavoured Dry Noodles & Peanut (Thin Noodles) (HK$78) and Shredded Chicken with Green Pepper Flavoured Dry Noodles & Peanut (Thin Noodles) (HK$78) swaps the rich and fragrant soup for a dry, spicy punch. Satisfying rice dishes are also available, including Taiwanese Braised Minced Pork Rice (HK$78) and Vegan Minced Pork Rice with Organic Mushroom (HK$68).

    The authentic Taiwanese dining experience extends to signature items such as Sanxing Scallion Pancake (HK$48), whose crusty exterior reveals a soft, aromatic interior and the sharp, peppery taste of Taiwan’s best scallions. Taiwanese Fried Chicken (HK$48) and Deep-fried Pork Chop (HK$48) are other favourite choices. For a unique twist, guests are invited to savour the slightly salty Pork Intestine with Thin Noodles (HK$48) and the huangjiu-infused chicken treat of Chinese Yellow Rice Wine Boneless Chicken with Red Date (HK$78). Shrimp & Pork Wontons in House Special Chili Oil (HK$68) and Spicy Duck Blood Cellophane Noodles (HK$88) also deliver the spicy essence of Grandma Duan’s life-long love and creativity.

    To cater to the ELEMENTS business crowd, Duan Chun Zhen presents a convenient Combo Set at lunch, priced from HK$118 to HK$158 for a noodle or rice course, plus a complimentary snack of either Taiwanese Fried Dumplings (3pcs), Taiwanese Fried Chicken (3pcs), or Deep-fried Pork Chops (3pcs), and a refreshing drink. Options include Ginger Tea, Winter Melon Tea, Ginger Ale or another soft drink. For an additional HK$12, lunchers can upgrade to a selected house-speciality drink.

    The beverage menu showcases classic Taiwanese favourites, starring the flavoursome and textural Winter Melon Barley Delight (HK$36), sweetly fresh Peach Jasmine Green Tea (HK$34), and tropical Passion Fruit Pineapple (HK$34). Each beverage offers a unique flavour profile, perfect for complementing the restaurant’s vibrant dishes.

  • Chagee’s Return To Vietnam Spurs Renewed Criticism Amid Expansion Plans

    Chagee’s Return To Vietnam Spurs Renewed Criticism Amid Expansion Plans

    Despite facing an earlier boycott due to its utilization of a contentious ‘nine-dash line’ map in its mobile application, Chinese milk tea franchise Chagee has made a return to the Vietnamese market.

    New Store Opens

    Recently, Chagee set up shop in Tan Huong Ward, a location which was previously part of District 7 prior to the administrative reorganization implemented in Ho Chi Minh City on the first of July. In an effort to regain customer trust and loyalty, the company has been offering promotional discounts.

    In an official statement shared on its fanpage, Chagee expressed its commitment to its mission “Chagee Together!”. The company also outlined its goal to “bring a complete tea experience closer to Vietnamese customers”.

    Renewed Criticism

    Nevertheless, the company’s reintroduction into the Vietnamese market has provoked a renewed wave of public criticism. A number of Vietnamese consumers continue to be skeptical of Chagee due to the brand’s link to the unlawful maritime claim represented in its former mobile application.

    One Facebook user stated, “Vietnam has no shortage of great milk tea brands. We should be supporting local businesses.” Following this renewed backlash, Chagee has deactivated comments on its social media platforms.

    Expansion and Controversy

    Additionally, Chagee has developed a website catered to the Vietnamese market, showcasing a beverage menu with prices varying from approximately US$1.65 to $3.35. The company reportedly has plans for further expansion by setting up numerous stores throughout Ho Chi Minh City in the forthcoming period.

    Chagee, established in 2017 in Shanghai, has swiftly expanded throughout Southeast Asia. Earlier this month, it inaugurated its first Philippine outlet.

    Chagee’s original foray into Vietnam was marked by the opening of a flagship store located at the crossroads of Dong Khoi and Nguyen Thiep streets in downtown Ho Chi Minh City, an area formerly part of District 1, now known as Saigon Ward.

    However, this initial launch rapidly fell apart after internet users identified a map on the Chagee app that represented China’s controversial “nine-dash line”. After this revelation, the company deactivated its social media platforms without providing a public explanation.

    Questions & Answers

    Why did Chagee face an earlier boycott in Vietnam?
    Chagee faced a boycott due to the use of a controversial ‘nine-dash line’ map in its mobile application, representing China’s contentious maritime claim.

    How is Chagee handling the renewed criticism and backlash?
    Chagee has responded by disabling comments on its social media platforms to mitigate the negative feedback.

    What are Chagee’s plans for the Vietnamese market?
    Chagee has launched a website targeted at the Vietnamese market and is reportedly planning to establish multiple stores across Ho Chi Minh City.

  • Popeyes Expands In The Philippines: New Franchising Program Launched Amid Record-breaking Performance

    Popeyes Expands In The Philippines: New Franchising Program Launched Amid Record-breaking Performance

    Popeyes, the renowned American fast food brand, has initiated its franchise program in the Philippines. This move comes in the wake of the country’s stellar performance, making it the leading global market for Popeyes in terms of transactions, as reported by the company’s parent organization, Restaurant Brands International (RBI).

    Franchising: The Logical Next Step

    Dustin Ngo, the Managing Director for Popeyes Philippines, expressed his views on the new franchising initiative. According to Ngo, franchising was the logical next phase in the company’s growth trajectory. He lauded it as a lucrative investment opportunity that aligns perfectly with Popeyes’ expansion plans over the next three years.

    Franchise investment for a 1000sqm drive-thru store varies between PHP$45 million and $50 million, equivalent to US$793,000 to $800,000. The investment package encompasses construction, equipment, training, and a 10-year franchise fee. The continued costs include an 8 per cent royalty and a 5 per cent advertisement fee, calculated based on sales.

    Comprehensive Support for Franchise Partners

    RBI, along with the local team, will offer comprehensive support to ensure a smooth and efficient setup and operation for the franchise partners. The objective is to make the operation of Popeyes franchises as hassle-free as possible.

    Dan Hayton, the Chief Operating Officer of Popeyes Philippines, further elucidated this point. He expressed the company’s desire for franchise partners to run their Popeyes franchise effortlessly, with the operation starting up as easily as turning a key.

    Questions & Answers

    What is the investment range for opening a Popeyes franchise in the Philippines?
    The investment for a 1000sqm drive-thru store ranges from PHP$45 million to $50 million (US$793,000 to $800,000), which includes costs for construction, equipment, training, and a 10-year franchise fee.

    What are the ongoing costs for a Popeyes franchise?
    The ongoing costs include an 8 per cent royalty and a 5 per cent advertisement fee, calculated based on sales.

    What kind of support does Popeyes provide to its franchise partners?
    Popeyes, in collaboration with RBI and the local team, provides comprehensive end-to-end support. The focus lies on ensuring a fast setup and operational efficiency for the franchise partners.

  • Central Pattana Unveils Plans For Mixed-use ‘central Park’ In Bangkok’s Heart

    Central Pattana Unveils Plans For Mixed-use ‘central Park’ In Bangkok’s Heart

    Central Pattana, based in Thailand, has announced plans to launch a new shopping centre named Central Park in Bangkok this September. This move constitutes a significant portion of a widespread mixed-use development.

    About the Project

    With a vast area of 130,000 square meters, the project encompasses retail space, a rooftop park, and a high-end office tower. Its design is intended to merge commercial, lifestyle, and environmental features within a central urban location.

    The forthcoming shopping centre will boast an array of Thai and international fashion brands. It is predicted to cater to both local consumers and overseas visitors.

    The Rooftop Park

    One of the development’s distinguishing features is an 11,200 square meter rooftop park. Touted as the largest of its kind in Thailand, this elevated green space will offer panoramic views of the Bangkok skyline.

    Inspiration and Location

    Situated at the crossroads of Silom and Rama, Central Park Bangkok is inspired by the likes of Central Park in New York and Hyde Park in London.

    The project also includes a 43-story office tower situated next to Lumpini Park. The building is striving for LEED Gold, Well Platinum, and WiredScore Gold certifications.

    The offices, which are directly linked to the shopping centre, are devised to foster a mixed-use environment catering to urban professionals.

    In the words of Central Pattana, this flagship project is “geared to become a world-class retail destination in the heart of Bangkok,” with the aim of promoting Thailand’s retail sector onto the international stage.

    Questions & Answers

    What is the anticipated date for the opening of Central Park Bangkok?
    Central Park Bangkok is slated to open in September.

    What elements does the Central Park Bangkok project incorporate?
    The project combines a shopping centre, a rooftop park, and a high-end office tower, aiming to blend commercial, lifestyle, and environmental facets in a central urban location.

    What kind of brands will the shopping centre feature?
    The shopping centre will showcase a variety of Thai and international fashion brands, targeting both local customers and international tourists.

  • Former H&M CEO, Helena Helmersson, Joins Mango’s Board In Strategic Sustainability Shift

    Former H&M CEO, Helena Helmersson, Joins Mango’s Board In Strategic Sustainability Shift

    The Spanish fashion giant, Mango, has recently announced the addition of Helena Helmersson to its board of directors as an independent member. This move is designed to enrich the corporate governance of the company through a management approach directed by seasoned expertise.

    Helmersson, a distinguished professional, brings to the table an extensive international perspective and vast experience within the fashion industry. Mango’s CEO and Chairman, Toni Ruiz, expressed his confidence in her ability to steer the company towards greater success.

    Helmersson’s illustrious career in the fashion industry spans over two decades, during which she gained considerable experience in global operations, production, and sustainability. Her past roles include serving as the CEO of H&M and holding board positions at companies such as On and Quizzr. Currently, she holds the position of Chairperson at Circulose.

    Helmersson expressed her enthusiasm about joining Mango, praising the brand’s ambitious plans for development and global expansion. She recognizes and appreciates Mango’s commitment to leading sustainability practices in the industry and is excited to contribute to the future success of the company.

    Her appointment to Mango’s board is an integral part of the company’s 2024 to 2026 strategic plan, known as the 4E. This plan is set to shift the company’s focus towards innovation and sustainability while simultaneously aiming to increase sales through broadened realms of operation.

    Questions & Answers

    Who has recently been appointed to the board of directors at Mango?
    Helena Helmersson has been appointed as a new independent member of the board of directors at Mango.

    What is the purpose of Helena Helmersson’s appointment to the board of directors at Mango?
    Her appointment is intended to strengthen the company’s corporate governance structure through her expert-led management approach.

    What does Mango’s 2024 to 2026 strategic plan entail?
    The 4E strategic plan aims to shift the company’s focus towards innovation and sustainability while boosting sales through expansion.

  • Luxury Brand Loro Piana Under Judicial Administration Amidst Labour Exploitation Allegations

    Luxury Brand Loro Piana Under Judicial Administration Amidst Labour Exploitation Allegations

    Luxury fashion brand Loro Piana, a subsidiary of LVMH, has been placed under judicial administration for one year by a Milan court following allegations of labour exploitation within its Italian supply chain.

    Labour Exploitation Allegations

    The court ruled that Loro Piana had failed to properly supervise its subcontractors, leading to labour violations through indirect suppliers. This makes Loro Piana the fifth luxury label to face such allegations since last year, joining the ranks of Dior, Valentino, Armani, and Alviero Martini.

    Investigations conducted by Italy’s Carabinieri labour protection unit unveiled that one of the workshops had employed 10 Chinese workers, five of whom were undocumented. These workers were allegedly forced to work up to 90 hours per week and were paid only EUR4 per hour (US$4.6). They were also illegally housed at the site.

    These allegations surfaced when a worker reported being assaulted over unpaid wages, leading to the arrest of the workshop owner and the closure of the facility.

    Judicial Administration

    Although Loro Piana is not subject to a criminal investigation, the court has appointed an external administrator to oversee improvements to the brand’s supply chain oversight. If the company demonstrates substantial progress, the judicial administration could be lifted early, as has happened in similar cases involving Dior and Armani.

    Loro Piana has attributed these violations to unauthorised subcontracting. It was discovered that the company had outsourced work via two front companies to Chinese-owned workshops in Milan. These workshops lacked the necessary capacity for manufacturing.

    The company has since severed ties with the supplier and pledged to reinforce its control and audit activities as a means of ensuring compliance with its ethical and quality standards.

    Company Background

    Loro Piana, acclaimed worldwide for its luxury cashmere and wool products, was acquired by LVMH in 2013. The founding family still retains a 20% stake in the company. This past June, Frederic Arnault, son of LVMH’s chairman and CEO Bernard Arnault, was appointed as the company’s CEO.

    Questions & Answers

    What led to the legal action against Loro Piana?
    A worker reported being physically assaulted over unpaid wages, sparking an investigation that revealed labour violations within the company’s supply chain.

    What measures has the court imposed on Loro Piana?
    The court has appointed an external administrator to supervise reforms to the brand’s supply chain oversight. The company has also been placed under judicial administration for a year.

    What steps has Loro Piana taken since the allegations surfaced?
    Loro Piana has ended its relationship with the implicated supplier and committed to enhancing its control and audit activities to ensure compliance with its ethical and quality standards.

  • Cos, H&m’s High-end Fashion Brand, To Debut In India With New Delhi Store

    Cos, H&m’s High-end Fashion Brand, To Debut In India With New Delhi Store

    Cos, the fashion brand owned by H&M and renowned for its “Collection of Style,” is set to make its debut in India later this year.

    Store Location and Offerings

    The inaugural store will be situated in New Delhi, India’s capital. It will exhibit the brand’s trademark contemporary aesthetic, featuring ready-to-wear collections along with accessories. The product range will cater to women, men, and children, thereby covering all demographics.

    Cos is globally recognized for its minimalist design, with a strong emphasis on craftsmanship. The brand is eager to bring its approach of creating long-lasting, durable fashion pieces to the new Indian market.

    Company Vision

    The company expressed its excitement for the new venture stating, “We are excited to introduce Cos to the Indian market and bring our emphasis on craftsmanship and innovative materials to a new audience.”

    Established in 2007, Cos has grown into a significant global presence. The brand operates 239 stores across 48 physical markets and holds an online presence in 38 markets. Apart from running its own outlets, the brand also sells through wholesale and franchise channels, marking its omnipresence in the fashion industry.

    Questions & Answers

    Where will Cos open its first store in India?
    The first Cos store in India will be opened in New Delhi.

    What is Cos known for?
    Cos is globally recognized for its minimalist design and a strong emphasis on craftsmanship.

    How does Cos distribute its products?
    Cos operates physical stores, has an online presence, and sells through wholesale and franchise channels.

  • Lululemon Partners With Tata Cliq To Expand Global Reach Into India

    Lululemon Partners With Tata Cliq To Expand Global Reach Into India

    Lululemon, a prominent Canadian athleisure brand, is preparing to penetrate the Indian market. This development comes as a result of a franchise agreement with domestic distributor Tata Cliq, signaling a crucial phase in Lululemon’s strategy for global expansion.

    Brick-and-Mortar Store Set to Launch in India

    The first physical Lululemon store in India is expected to open its doors in the latter half of next year. To complement this physical presence, the athleisure brand will also carve out a digital space on Tata Cliq Luxury and Tata Cliq Fashion.

    Gopal Asthana, in his capacity as CEO of Tata Cliq, expressed his excitement about the partnership. He emphasized that the collaboration is aimed at acquainting the Indian consumer with Lululemon’s superior-quality athletic wear and lifestyle products.

    Lululemon’s Product Range

    Asthana further elaborated on the range of products Lululemon will introduce in India. These include innovative athletic and lifestyle apparel, shoes, and accessories. The brand’s high-performance items are designed for a variety of activities, including yoga, running, training, tennis, and golf.

    Lululemon’s Global Presence

    Since its inception in 1998, Lululemon has spread its wings to operate over 760 stores across the globe. Its presence is felt in North America, Europe, and the Asia-Pacific region.

    The upcoming launch in India aligns with the broader vision of Lululemon’s CEO, Calvin McDonald. He anticipates expanding the brand’s global reach to a total of 1,000 locations.

    Questions & Answers

    Who is Lululemon partnering with to break into the Indian market?
    Lululemon has entered into a franchise agreement with Tata Cliq, a local distributor, to make inroads into the Indian market.

    What range of products will Lululemon be introducing in India?
    Lululemon will present an array of products to the Indian consumer, including innovative athletic and lifestyle apparel, shoes, and accessories designed for activities such as yoga, running, training, tennis, and golf.

    What is the broader vision of Lululemon’s CEO, Calvin McDonald?
    Calvin McDonald has expressed his goal of expanding Lululemon’s global footprint to encompass 1,000 locations.

  • New Tax Measures Trigger 300% Price Surge On Chinese E-commerce Platform In Pakistan

    New Tax Measures Trigger 300% Price Surge On Chinese E-commerce Platform In Pakistan

    Prices on the Chinese e-commerce platform, Temu, have dramatically surged in Pakistan, with increases reaching up to 300% in some cases. This substantial escalation has been reported by customers over the past week, marking a significant shift in the online shopping landscape.

    New Taxes Imposed

    These price spikes appear to be occurring in the wake of new tax measures instituted by the government. The administration last month implemented new taxes specifically targeting online sellers. These levies extend to platforms such as Temu and AliExpress, among others.

    While the companies haven’t issued an official statement providing the reasons behind the price alterations, a spokesperson for Temu pointed to external policy shifts and escalating operational costs across numerous sectors as the primary catalysts for the increases. The spokesperson stated, “We remain committed to providing access to quality products at affordable prices, while fully complying with local requirements.”

    Digital Presence Proceeds Tax Act

    The government disclosed last month that a 5% tax would be put on all goods sold in Pakistan by foreign digital platforms that lack a physical presence in the country. This initiative is part of the Digital Presence Proceeds Tax Act. The goal of this tax is ostensibly to create a more equitable commercial environment. It is said to target online platforms such as Facebook, Google, Spotify and Netflix, in addition to select local online sellers.

    Further, online retail platforms are now also responsible for paying the standard 18% sales tax applicable to local businesses in Pakistan. The government’s rationale for these tax hikes is to equalize conditions for Pakistani businesses that are already subject to both the 18% sales tax and an income tax of up to 35%.

    Concerns Over Impact

    While the government’s intent might be to create a fairer marketplace, experts have voiced concerns over the potential harm the digital tax could inflict on Pakistan’s burgeoning e-commerce market.

    Questions & Answers

    What are the new tax measures impacting e-commerce in Pakistan?
    Last month, the government introduced a 5% tax on all goods sold in Pakistan by foreign digital platforms. These platforms are also expected to pay the 18% sales tax applicable to local businesses.

    What is the rationale for these new taxes?
    The government’s intent with these tax hikes is to create a level playing field for local Pakistani businesses already paying an 18% sales tax and an income tax of up to 35%.

    What are the potential consequences of the new digital tax?
    While the intention is to foster a more equitable commercial environment, experts have raised concerns that the digital tax could harm Pakistan’s rapidly growing e-commerce market.

  • Inditex’s Budget Brand Lefties Makes A Comeback In France Amid Rising Online Competition

    Inditex’s Budget Brand Lefties Makes A Comeback In France Amid Rising Online Competition

    In a recent announcement, the CEO of Inditex, the parent company of renowned fashion brand Zara, revealed plans to expand the company’s budget brand, Lefties, into France. The move is seen as an attempt to appeal to younger consumers and increase competition with low-cost rivals, including the popular online retailer Shein.

    Lefties Returns to France

    This new development signifies Lefties’ re-entry into the French market after a previous launch in 2009 that saw the closure of all its French outlets by 2012. Lefties, which was established a quarter of a century ago, began as an outlet for Zara’s leftover items. It has since blossomed into a significant player in the industry with a presence in 18 countries. The brand’s growth comes amidst increasing competition from online-only retailers such as Shein, known for their ultra-low prices.

    As part of its recent rebranding efforts, Lefties unveiled a new, all-capital letters logo in May alongside the slogan, “Lefties everywhere, on everyone.” While the brand’s main focus remains Spain and Portugal, Inditex CEO Oscar Garcia Maceiras recently stated that Inditex is currently “testing Lefties in new markets.”

    Pricing Competitive to Market Rivals

    Lefties offers competitively priced items, with dresses costing as low as 9.9 euros (US$11.55) and jeans at 12.99 euros. These prices are on par with those of Shein and Primark, and offer a more affordable alternative to Zara, which has seen price hikes in recent years.

    Expansion of Inditex’s Other Brands

    In addition to the expansion of Lefties, Inditex is also extending its range of other brands, as announced by Garcia Maceiras at the firm’s annual shareholder meeting. Bershka is slated to open its first stores in Denmark, Stradivarius in Austria, Oysho in the Netherlands, and Massimo Dutti in Brazil. In the United States, the Zara Man label is set to launch with a store in Costa Mesa, Los Angeles.

    The planned store openings, including Lefties’ expansion into France, are scheduled to occur this year and next, according to an Inditex spokesperson.

    Questions & Answers

    What are the expansion plans of Inditex for its budget brand Lefties?
    Lefties, the budget brand of Inditex, is set to expand into France as part of a strategy to attract younger consumers and compete with low-cost rivals.

    When did Lefties first launch in France and what happened?
    Lefties initially launched in France in 2009, but by 2012 all its French outlets were closed. The current plan signifies a re-entry of the brand into the French market.

    What other brands are Inditex planning to expand and where?
    Inditex is also planning to expand other brands, including Bershka in Denmark, Stradivarius in Austria, Oysho in the Netherlands, and Massimo Dutti in Brazil. Furthermore, the Zara Man label is set to make its U.S. debut with a store in Costa Mesa, Los Angeles.

  • China’s Smartphone Market Sees Contraction; Huawei Reclaims Top Spot Amidst Decreased Shipments

    China’s Smartphone Market Sees Contraction; Huawei Reclaims Top Spot Amidst Decreased Shipments

    After six consecutive quarters of growth, China’s smartphone market showed signs of contraction during the second quarter of this year. The International Data Corporation (IDC) reported a decrease in shipments from the top four out of five brands, attributing this to a dip in consumer demand.

    Apple, which holds the fifth position in China’s smartphone market, experienced a 1.3% year-on-year decrease in shipments in the second quarter, equating to a shipment of 9.6 million units. While still marking a decline, this represents a notably smaller decrease than the 9% drop witnessed in the first quarter of the year. This is believed to be due in part to adjustments in the pricing of specific iPhone 16 and 16 Pro models, which are eligible for government subsidies.

    Despite this, Apple’s share of the market increased, growing from 13.7% in the March quarter to 13.9% in the June quarter. However, this still marks the eighth consecutive quarter in which Apple’s market share has declined.

    Huawei, the Shenzhen-based technological powerhouse, regained its position at the top of the market after more than four years, seizing an 18.1% market share. Huawei shipped approximately 12.5 million phones during the second quarter, a 3.4% year-on-year decrease.

    Xiaomi, holding the fourth position in the market, was the only smartphone manufacturer to record an increase in shipments during the last quarter. Vivo, standing at second place, witnessed the most significant decline in the top five brands, with shipments decreasing by 10.1%.

    Overall, China’s smartphone shipments fell by 4.0% year-on-year to 69 million units in the second quarter. This decline came as the momentum spurred by government subsidies began to falter amid more wide-ranging economic weaknesses.

    Senior research analyst at IDC, Arthur Guo, commented on the broader economic challenges faced by the industry, stating that consumer confidence remains low. Guo suggested that a significant boost in smartphone demand is unlikely in the near future and projected a more multifaceted landscape for the market in the second half of the year.

    Questions & Answers

    What was the rate of decline in China’s smartphone market during the second quarter?
    The rate of decline in China’s smartphone market during the second quarter was 4.0%.

    Which brand reclaimed the top spot in China’s smartphone market?
    Huawei regained the top position in China’s smartphone market after over four years.

    What was the only brand among the top five to record growth in shipments during the last quarter?
    Xiaomi was the only brand among the top five to record growth in shipments during the last quarter.

  • Richemont Reports 6% Quarterly Sales Rise Thanks To Cartier, Van Cleef & Arpels Jewelry Brands

    Richemont Reports 6% Quarterly Sales Rise Thanks To Cartier, Van Cleef & Arpels Jewelry Brands

    The Swiss luxury conglomerate, Richemont, reported a six per cent increase in quarterly sales, attributing the growth to the continued popularity of its fine jewelry brands, Cartier and Van Cleef & Arpels, among affluent consumers.

    Quarterly Sales Figures

    For the first quarter, ending June, the firm posted sales of 5.4 billion euros. This figure mirrors the projected six per cent growth in accordance with the forecast set by financial analysts.

    The powerhouse behind the group’s expansion was the jewelry division, which reported an 11 per cent sales increase. However, the company’s watch division, which comprises esteemed brands such as Vacheron Constantin and Jaeger LeCoultre, did not perform as well. Watch sales were seven per cent lower on a year-on-year basis, although this represents a minor recovery from the 11 per cent decline witnessed in the preceding quarter.

    Global Market Performance

    The Swiss watch industry, currently grappling with potential tariff threats in the United States, is predicted to report its lowest wristwatch export volumes since the onset of the pandemic in 2020.

    Regionally, sales performance varied. In the Americas, primarily the U.S market, sales improved mildly – up 17 per cent, surpassing the 12 per cent growth forecast. Conversely, sales in Asia remained stagnant, as a seven per cent sales slump in China, Hong Kong, and Macau was counterbalanced by robust business activities in other parts of the continent.

    Questions & Answers

    Which Richemont division led the group’s growth? The jewelry division led Richemont’s growth, reporting an 11 per cent increase in sales.

    How did the watch division perform? The watch sales were seven per cent lower on a year-on-year basis.

    How did sales vary across regions? Sales improved in the Americas, particularly in the U.S, by 17 per cent. In Asia, sales remained stagnant due to a seven per cent sales decrease in China, Hong Kong, and Macau, offset by stronger business in other Asian regions.